TC PipeLines, LP (NASDAQ: TCLP) (the Partnership) today reported a
$1.5 million increase in second quarter 2011 Partnership cash flows
to $47.7 million compared to $46.2 million for the same period in
2010. Net income for second quarter 2011 was $36.1 million or $0.69
per common unit, an increase of $8.4 million or $0.10 per common
unit, compared to $27.7 million or $0.59 per common unit for the
same period in 2010.
"We are well positioned for the future following our acquisition
of a 25 percent interest in the Bison and Gas Transmission
Northwest pipelines and our strong second quarter operating
results," said Steve Becker, President, TC Pipelines GP, Inc. "Our
solid performance was reflected in successful financing activities
including an equity issue, a 10-year public debt issue, a
refinancing of our credit line and our investment grade credit
rating. With our strong balance sheet and our expanded portfolio of
assets, the Partnership is well positioned to deliver results in
the future."
Second Quarter Highlights (All financial figures are
unaudited)
- Raised second quarter 2011 cash distribution to $0.77 per
common unit, an increase of 3 percent over first quarter 2011. This
marks the 12th consecutive year of increasing distributions for the
Partnership.
- Partnership cash flows of $47.7 million
- Paid cash distributions of $35.4 million
- Net income of $36.1 million or $0.69 per common unit
- Acquired 25 percent interest in each of Gas Transmission
Northwest LLC (GTN) and Bison Pipeline LLC (Bison)
- Issued 7.3 million common units in a public offering
- Obtained investment grade credit ratings from Standard &
Poor's and Moody's (BBB/Baa2)
- Issued $350 million in first public debt offering
- Renewed and increased size of senior revolving credit facility
to $500 million
(unaudited) Three months ended Six months ended
(millions of dollars except per June 30, June 30,
common unit amounts) 2011 2010 2011 2010
----------------------------------------------------------------------------
Partnership cash flows(a) 47.7 46.2 96.0 83.0
Cash distributions paid (35.4) (34.4) (70.8) (68.9)
Cash distributions declared per
common unit(b) $0.77 $ 0.73 $1.52 $ 1.46
Net income(c) 36.1 27.7 78.4 61.4
Net income per common unit(d) $0.69 $ 0.59 $1.58 $ 1.30
Weighted average common units
outstanding (millions) 50.9 46.2 48.6 46.2
Common units outstanding at end of
period (millions) 53.5 46.2 53.5 46.2
(a) Partnership cash flows is a non-GAAP financial measure. Refer to the
section entitled "Partnership Cash Flows" for further detail.
(b) The Partnership's 2011 second quarter cash distribution will be paid on
August 12, 2011 to unitholders of record as of the close of business on
July 31, 2011.
(c) Includes equity earnings from GTN and Bison from May 3, 2011, date of
acquisition, to June 30, 2011.
(d) Net income per common unit is computed by dividing net income, after
deduction of the general partner's allocation, by the weighted average
number of common units outstanding. The general partner's allocation is
computed based upon the general partner's effective two percent interest
plus an amount equal to incentive distributions.
Recent Developments
Second Quarter Cash Distribution
On July 19, 2011, the Partnership announced that the board of
directors of TC PipeLines GP, Inc., the Partnership's general
partner, declared the Partnership's second quarter 2011 cash
distribution of $0.77 per common unit. This cash distribution is an
increase of $0.02 per common unit from the first quarter 2011
distribution and an increase of $0.08 per common unit on an
annualized basis. The distribution is payable on August 12, 2011 to
unitholders of record as of the close of business on July 31,
2011.
GTN and Bison Acquisition and Equity Issue
On May 3, 2011, the Partnership acquired a 25 percent interest
in each of GTN and Bison from subsidiaries of TransCanada
Corporation for a total transaction value of $605.0 million,
subject to certain closing adjustments. In connection with the
acquisitions, the Partnership issued 7.3 million common units to
the public at a price of $47.58 per common unit for net proceeds of
$337.6 million, including the contribution from the Partnership's
general partner to maintain its effective two percent general
partner interest.
Debt Offering and Refinancing
On June 17, 2011, the Partnership closed a $350 million public
offering of 10-year, senior unsecured notes with an interest rate
of 4.65 percent, which mature June 2021.
On July 13, 2011, the Partnership closed an amendment to its
senior credit facility increasing the revolving credit facility to
$500.0 million with a LIBOR-based interest rate plus a margin, and
extending the maturity date of the senior revolving credit facility
to July 2016. The Partnership's $300.0 million senior term loan
continues to mature in December 2011.
Partnership Cash Flows
The Partnership uses the non-GAAP financial measures
"Partnership cash flows" and "Partnership cash flows before general
partner distributions" as they provide measures of cash generated
during the period to evaluate our cash distribution capability. As
well, management uses these measures as a basis for recommendations
to our general partner's board of directors regarding the
distribution to be declared each quarter. Partnership cash flow
information is presented to enhance investors' understanding of the
way that management analyzes the Partnership's financial
performance.
Partnership cash flows include cash distributions from the
Partnership's equity investments, Great Lakes, Northern Border, GTN
and Bison, plus operating cash flows from the Partnership's
wholly-owned subsidiaries, North Baja and Tuscarora, net of
Partnership costs and distributions declared to the general
partner. As the Partnership's interests in GTN and Bison were
acquired in May 2011, no distributions were received from these
investments in the second quarter of 2011.
Partnership cash flows and Partnership cash flows before general
partner distributions are provided as a supplement to GAAP
financial results and are not meant to be considered in isolation
or as substitutes for financial results prepared in accordance with
GAAP.
Second Quarter 2011
Partnership cash flows increased $1.5 million to $47.7 million
in the second quarter of 2011 compared to $46.2 million in the same
period of 2010. This increase was primarily due to increases in
cash distributions from Northern Border of $5.0 million and Great
Lakes of $3.4 million, partially offset by higher costs at the
Partnership level of $5.0 million relating to the acquisitions of
25 percent interests in GTN and Bison and higher financial
charges.
The Partnership paid distributions of $35.4 million in the
second quarter of 2011, an increase of $1.0 million compared to the
same period in 2010 due to an increase in the quarterly
distribution of $0.02 per common unit beginning in the third
quarter of 2010.
Net Income
To supplement our financial statements, we have presented a
comparison of the earnings contribution components from each of our
investments. We have presented net income in this format to enhance
investors' understanding of the way management analyzes our
financial performance. We believe this summary provides a more
meaningful comparison of our net income to prior year periods, as
we account for our partially-owned pipeline systems using the
equity method. The presentation of this additional information is
not meant to be considered in isolation or as a substitute for
results prepared in accordance with GAAP.
Three months ended Six months ended
(unaudited) June 30, June 30,
(millions of dollars) 2011 2010 2011 2010
----------------------------------------------------------------------------
Equity earnings:
Great Lakes 17.0 13.1 35.0 29.4
Northern Border 16.2 12.2 36.8 26.8
GTN(a) 2.4 - 2.4 -
Bison(a) 1.9 - 1.9 -
Net income from Other Pipes(b) 10.0 9.0 20.5 18.3
Partnership expenses (11.4) (6.6) (18.2) (13.1)
----------------------------------------
Net income 36.1 27.7 78.4 61.4
----------------------------------------
----------------------------------------
(a) Represents equity earnings from May 3, 2011, date of acquisition, to
June 30, 2011.
(b) "Other Pipes" includes the results of North Baja and Tuscarora.
Second Quarter 2011
Net income increased $8.4 million to $36.1 million in the second
quarter of 2011 compared to $27.7 million in the same period in
2010. This increase was primarily due to higher equity income from
Great Lakes and Northern Border, and earnings from the 25 percent
interests in GTN and Bison, which were acquired in May 2011. These
increases were partially offset by higher Partnership costs.
Equity income from Great Lakes was $17.0 million in the second
quarter of 2011, an increase of $3.9 million compared to $13.1
million for the second quarter of 2010. This increase was primarily
due to the cumulative impact of a Michigan tax law change
eliminating Michigan business tax at the partnership level as well
as the positive impact to earnings from depreciation rate
reductions arising from the Section 5 rate case settlement in May
2010.
Equity income from Northern Border was $16.2 million in the
second quarter of 2011, an increase of $4.0 million compared to
$12.2 million for the same period in 2010. This increase was
primarily due to increased demand for transportation services in
the second quarter of 2011.
Costs at the Partnership level were $11.4 million in the second
quarter of 2011, an increase of $4.8 million compared to $6.6
million for the second quarter of 2010. This increase was primarily
due to costs incurred relating to the GTN and Bison acquisitions
along with higher financial charges in 2011 resulting from higher
average debt outstanding.
Liquidity and Capital Resources
At June 30, 2011, there was $14.0 million outstanding on the
$250.0 million revolver portion of the Partnership's senior credit
facility and $300.0 million outstanding under the term loan portion
of the senior credit facility. The average interest rate on the
senior credit facility was 3.50 percent for the three months ended
June 30, 2011, including the impact of interest rate hedging
activity.
On June 17, 2011, the Partnership closed a $350.0 million public
offering of 10-year, senior unsecured notes with an interest rate
of 4.65 percent. Proceeds were used to repay funds borrowed under
the Partnership's bridge loan facility and to partially repay
borrowings under our existing Senior Credit Facility. The senior
notes mature June 15, 2021.
On July 13, 2011, the Partnership closed an amendment to its
senior credit facility increasing the revolving credit facility to
$500.0 million with a LIBOR-based interest rate plus a margin, and
extending the maturity date of the senior revolving credit facility
to July 2016. The Partnership's $300.0 million senior term loan
continues to mature in December 2011.
The Partnership was in compliance with the covenants of the
credit agreement at June 30, 2011.
Conference Call
Analysts, members of the media and other interested parties are
invited to participate in a teleconference by calling 866.225.0198
on Wednesday, July 27, 2011 at 11:00 a.m. central daylight time
(CDT)/12 p.m. eastern daylight time (EDT). Steve Becker, president
of the general partner, will discuss the second quarter 2011
financial results and Partnership developments, followed by a
question and answer session for the investment community and media.
Please dial in 10 minutes prior to the start of the call. No pass
code is required. A live webcast of the conference call will also
be available through the Partnership's website at
www.tcpipelineslp.com. Slides for the presentation will be posted
on the Partnership's website under "Event and Presentations" prior
to the webcast.
A replay of the teleconference will also be available two hours
after the conclusion of the call and until 11 p.m. (CDT) and
midnight (EDT) on August 3, 2011, by calling 800.408.3053, then
entering pass code 8686876.
TC PipeLines, LP has interests in 5,560 miles of federally
regulated U.S. interstate natural gas pipelines which serve markets
across the United States and Eastern Canada. This includes
significant interests in Great Lakes Gas Transmission Limited
Partnership and Northern Border Pipeline Company as well as 25
percent ownership interest in each of Gas Transmission Northwest
LLC, and Bison Pipeline LLC. TC PipeLines, LP also has 100 percent
ownership of North Baja Pipeline, LLC and Tuscarora Gas
Transmission Company. TC PipeLines, LP is managed by its general
partner, TC PipeLines GP, Inc., an indirect wholly owned subsidiary
of TransCanada Corporation. TC PipeLines GP, Inc. also holds common
units of TC PipeLines, LP. Common units of TC PipeLines, LP are
quoted on the NASDAQ Global Select Market and trade under the
symbol "TCLP." For more information about TC PipeLines, LP, visit
the Partnership's website at www.tcpipelineslp.com.
Cautionary Statement Regarding Forward-Looking Information
This news release may include "forward-looking statements"
regarding future events and the future financial performance of TC
PipeLines, LP. All statements other than statements of historical
fact included herein may constitute forward-looking statements.
Words such as "anticipate," "believe," "continue," "estimate,"
"expect," "intend," "forecast," "project," "may," "plan,"
"strategy," and similar expressions identify forward-looking
statements. All forward-looking statements are based on the
Partnership's current beliefs as well as assumptions made by and
information currently available to the Partnership. These
statements reflect the Partnership's current views with respect to
future events and are not guarantees of performance. Actual results
may differ materially from those expressed or implied in these
forward-looking statements and are subject to a number of risks and
uncertainties. Important factors that could cause actual results to
materially differ from the Partnership's current expectations
include the demand for Great Lakes, Northern Border and GTN
transportation in the future; the risk of a prolonged slowdown in
growth or further decline in the U.S. economy or the risk of delay
in growth recovery in the U.S. economy; regulatory decisions,
particularly those of the FERC; the ability of Great Lakes,
Northern Border and GTN to recontract their available capacity on
competitive terms or at all; the Partnership's ability to identify
and/or consummate accretive growth opportunities from TransCanada
Corporation or others; the ability to access capital and credit
markets with competitive rates and terms; operational decisions of
the operator of our pipeline systems; the failure of a shipper on
any one of the Partnership's pipelines to perform its contractual
obligations; available supply of natural gas in the Western Canada
Sedimentary Basin and in competing basins, such as the Rocky
Mountains, as well as increasing development of shale natural gas
production; future demand for natural gas; overcapacity in the
industry; success of other pipelines competing with Northern
Border, Great Lakes and GTN by bringing competing U.S.-sourced gas
to Northern Border's, Great Lakes' and GTN's markets; and other
risks inherent in the transportation of natural gas as discussed in
the Partnership's filings with the Securities and Exchange
Commission (SEC), including its Annual Report on Form 10-K for the
most recently completed fiscal year and its subsequently filed
Quarterly Report on Form 10-Q. These filings are available to the
public over the Internet at the SEC's website (www.sec.gov) and via
the Partnership's website (www.tcpipelineslp.com). The Partnership
disclaims any intention or obligation to update publicly or revise
any such forward-looking statements, whether as a result of new
information, future events or otherwise, occurring after the date
hereof.
TC PipeLines, LP
Financial Summary
Consolidated Statement of Income
(unaudited) Three months ended Six months ended
(millions of dollars except per June 30, June 30,
common unit amounts) 2011 2010 2011 2010
----------------------------------------------------------------------------
Equity earnings from unconsolidated
affiliates(a) 37.5 25.3 76.1 56.2
Transmission revenues 17.6 17.0 34.9 34.4
Operating expenses (3.4) (3.3) (6.5) (6.7)
General and administrative (4.8) (1.1) (6.6) (2.4)
Depreciation (4.0) (3.7) (7.7) (7.4)
Financial charges and other (6.8) (6.5) (11.8) (12.7)
----------------------------------------
Net income 36.1 27.7 78.4 61.4
----------------------------------------
----------------------------------------
Net income allocation
Common units 35.4 27.2 76.8 60.2
General partner 0.7 0.5 1.6 1.2
----------------------------------------
36.1 27.7 78.4 61.4
----------------------------------------
----------------------------------------
Net income per common unit $0.69 $ 0.59 $1.58 $ 1.30
----------------------------------------
----------------------------------------
Weighted average common units
outstanding (millions) 50.9 46.2 48.6 46.2
----------------------------------------
----------------------------------------
Common units outstanding, end of
the period (millions) 53.5 46.2 53.5 46.2
----------------------------------------
----------------------------------------
(a) Includes equity earnings from GTN and Bison from May 3, 2011, date of
acquisition, to June 30, 2011.
Consolidated Condensed Balance Sheet
(unaudited)
(millions of dollars) June 30, 2011 December 31, 2010
----------------------------------------------------------------------------
ASSETS
Current assets 10.3 12.3
Investments in unconsolidated affiliates 1,591.8 1,194.8
Other assets 438.1 443.4
---------------------------------
2,040.2 1,650.5
---------------------------------
---------------------------------
----------------------------------------------------------------------------
LIABILITIES AND PARTNERS' EQUITY
Current liabilities 6.7 9.0
Fair value of derivative contracts,
including current portion and other 8.2 15.1
Long-term debt, including current portion 693.9 513.9
Partners' equity 1,331.4 1,112.5
---------------------------------
2,040.2 1,650.5
---------------------------------
---------------------------------
Non-GAAP Measures
Reconciliations of Net Income to Partnership Cash Flows
(unaudited) Three months ended Six months ended
(millions of dollars except per June 30, June 30,
common unit amounts) 2011 2010 2011 2010
----------------------------------------------------------------------------
Net income(a) 36.1 27.7 78.4 61.4
Add:
Cash distributions from Great
Lakes(b) 21.4 18.0 38.3 33.7
Cash distributions from Northern
Border(b) 26.5 21.5 52.3 37.9
Cash distributions from GTN(b) - - - -
Cash distributions from Bison(b) - - - -
Cash flows provided by Other Pipes'
operating activities 12.0 14.0 25.1 25.9
----------------------------------------
59.9 53.5 115.7 97.5
----------------------------------------
Less:
Equity earnings from unconsolidated
affiliates (37.5) (25.3) (76.1) (56.2)
Other Pipes' net income (10.0) (9.0) (20.5) (18.3)
----------------------------------------
(47.5) (34.3) (96.6) (74.5)
----------------------------------------
Partnership cash flows before
General Partner distributions 48.5 46.9 97.5 84.4
General Partner distributions(c) (0.8) (0.7) (1.5) (1.4)
----------------------------------------
Partnership cash flows 47.7 46.2 96.0 83.0
----------------------------------------
----------------------------------------
Cash distributions declared (42.0) (34.4) (77.4) (68.9)
Cash distributions declared per
common unit(d) $0.77 $ 0.73 $1.52 $ 1.46
Cash distributions paid (35.4) (34.4) (70.8) (68.9)
Cash distributions paid per common
unit(d) $0.75 $ 0.73 $1.50 $ 1.46
(a) Includes equity earnings from GTN and Bison from May 3, 2011, date of
acquisition, to June 30, 2011.
(b) In accordance with the cash distribution policies of the respective
pipeline systems, cash distributions from Great Lakes, Northern Border,
GTN and Bison are based on their respective prior quarter financial
results. As interests in GTN and Bison were acquired in May 2011, no
distributions were received from these investments in the second quarter
of 2011.
(c) General partner distributions represent the cash distributions declared
to the general partner with respect to its effective two percent
interest plus an amount equal to incentive distributions.
(d) Cash distributions declared per common unit and cash distributions paid
per common unit are computed by dividing cash distributions, after the
deduction of the general partner's allocation, by the number of common
units outstanding. The general partner's allocation is computed based
upon the general partner's effective two percent interest plus an amount
equal to incentive distributions.
Operating Statistics
Three months ended Six months ended
June 30, June 30,
(unaudited) 2011 2010 2011 2010
----------------------------------------------------------------------------
Great Lakes
Volumes:
Average throughput (million cubic
feet per day) 2,201 2,130 2,544 2,132
Capital Expenditures (millions of
dollars) :
Maintenance - 1.1 0.9 3.0
Growth 0.1 0.8 0.2 0.9
----------------------------------------
Northern Border
Volumes:
Average throughput (million cubic
feet per day) 2,508 2,462 2,642 2,336
Capital Expenditures (millions of
dollars) :
Maintenance 6.9 0.2 8.6 0.9
Growth 1.2 1.1 1.9 1.1
----------------------------------------
GTN (a)
Volumes:
Average throughput (million cubic
feet per day) 1,768 1,999 1,862 2,149
Capital Expenditures(c) (millions
of dollars) :
Maintenance 0.3 - 0.3 -
Growth 0.6 - 0.6 -
----------------------------------------
Bison (b)
Capital Expenditures(c) (millions
of dollars) :
Maintenance - - - -
Growth 13.2 - 13.2 -
----------------------------------------
North Baja (b)
Capital Expenditures (millions of
dollars) :
Maintenance 0.2 - 0.2 0.1
Growth 0.2 - 0.2 8.4
----------------------------------------
Tuscarora (b)
Capital Expenditures (millions of
dollars) :
Maintenance - 0.2 - 0.2
Growth - 0.1 - 0.1
----------------------------------------
(a) The interest in GTN was acquired on May 3, 2011. Average daily scheduled
volumes for periods prior to May 3, 2011 are presented for comparative
information purposes only.
(b) Average daily scheduled volumes represent volumes of natural gas,
irrespective of path or distance transported, from which variable usage
fee revenue is earned. Average daily scheduled volumes are not presented
for Bison, North Baja and Tuscarora as cash flows and net income from
these investments are primarily underpinned by long-term firm contracts
and do not vary significantly with changes in utilization.
(c) Represents capital expenditures from GTN and Bison from May 3, 2011,
date of acquisition, to June 30, 2011.
Contacts: TC PipeLines, LP Media Inquiries Terry Cunha/Shawn
Howard 403.920.7859 or 800.608.7859 TC PipeLines, LP Unitholder and
Analyst Inquiries Lee Evans 877.290.2772
investor_relations@tcpipelineslp.com
TC Pipelines, LP - Common Units Representing Limited Partnership Interests (MM) (NASDAQ:TCLP)
過去 株価チャート
から 8 2024 まで 9 2024
TC Pipelines, LP - Common Units Representing Limited Partnership Interests (MM) (NASDAQ:TCLP)
過去 株価チャート
から 9 2023 まで 9 2024